Government loan programs

CALIFORNIA HOUSING FINANCE AGENCY

Government Loan Programs

LAST REVISED: MARCH 1, 2021

GOVERNMENT LOAN PROGRAMS

Table of Contents

I. Eligibility

1

a. Borrower Requirements

b. Homebuyer Education

2

c. First-Time Homebuyer Definition

d. Owner Occupancy

e. Property Requirements

3

II. Underwriting & Compliance

4

a. Transaction type

b. Term

c. FHA Section of the ACT

d. LTV and CLTV

5

e. Maximum Loan Amount

f. Income Limits

6

g. Income Requirements

h. Qualifying Ratios

i. Automated Underwriting

j. Manual Underwriting

7

k. Miscellaneous Lakeview Loan Servicing Underwriting Guidelines

III. Basic Home Protection Coverage

8

a. Mandatory Home Warranty Insurance Coverage

IV. Subordinate Financing

8

a. MyHome Assistance Program

b. CalHFA Zero Interest Programs (ZIP)

c. Non-CalHFA Subordinate

9

d. Other Programs and Assistance

V. Fees

10

a. Lender Allowable Fees (Origination & Processing) b. Master Servicer Fees

2021 CALIFORNIA HOUSING FINANCE AGENCY

calhfa. | 877.9.CalHFA (877.922.5432)

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GOVERNMENT LOAN PROGRAMS

CalPLUSSM FHA FHA-Insured first mortgage combined with the CalHFA FHA Zero Interest Program (ZIP) for closing cost. This loan may be combined with the MyHome Assistance Program (MyHome).

CalHFA FHA FHA-Insured first mortgage. This loan may be combined with the MyHome Assistance Program (MyHome).

CalHFA USDA USDA Guaranteed first mortgage. This loan may be combined with the MyHome Assistance Program (MyHome).

CalHFA VA VA Guaranteed first mortgage. This loan may be combined with the MyHome Assistance Program (MyHome).

Eligibility

Borrower Requirements Each borrower must:

? Be either a citizen or other National of the United States, or a "Qualified Alien" as defined at 8 U.S.C. ? 1641.

? Meet the credit, income, property and loan requirements detailed in this program handbook, as well as CalHFA's Lender Manual, the first mortgage investor, the CalHFA-approved lender, the mortgage insurer or guarantor and CalHFA's master servicer's requirements.

? Be a first-time homebuyer. Exceptions to first-time homebuyer requirement:

? CalHFA FHA, CalHFA USDA or CalHFA VA first mortgage without any subordinate financing

2021 CALIFORNIA HOUSING FINANCE AGENCY

calhfa. | 877.9.CalHFA (877.922.5432)

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GOVERNMENT LOAN PROGRAMS

? Borrowers utilizing HUD Section 184 Indian Home Loan Guarantee Program ? Borrowers utilizing HUD Section 203(h) program ? Borrowers affected by natural disasters in California

Previous property must: > Be located in an area declared as a Major Disaster and posted on the Federal

Emergency Management Agency (FEMA) website > Have been the borrower's primary residence > Have been destroyed or declared uninhabitable with supporting documenta-

tion supplied from either (i) the insurance company or (ii) the local government jurisdiction > Be affected by a declared Major Disaster are eligible to purchase a new home using CalHFA loan programs within three (3) years of that Major Disaster's declaration date

Homebuyer Education

Homebuyer education and counseling is required for one occupying first-time homebuyer. Certificates are good for one-year. Homebuyer education and counseling is not required for non-first-time homebuyer(s).

? Online Homebuyer Education through eHomeTM ? In Person or Virtual Live Homebuyer Education through NeighborWorks America or

through one of the HUD approved Housing Counseling Agencies

First-Time Homebuyer Definition ? To qualify for a CalHFA Government loan program, all borrowers, including co-borrowers must reside in the home and meet the definition of a first-time homebuyer. ? A first-time homebuyer is defined as a borrower who has not had an ownership interest in any principal residence or resided in the home owned by a spouse during the previous three years.

Owner Occupancy ? All borrowers must occupy the property as their primary residence within sixty (60) days of closing ? Non-occupant co-borrowers are not allowed ? Non-occupant co-signors are not allowed

2021 CALIFORNIA HOUSING FINANCE AGENCY

calhfa. | 877.9.CalHFA (877.922.5432)

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GOVERNMENT LOAN PROGRAMS

Property Requirements ? Lot size cannot exceed five (5) acres maximum ? Eligible property types: > Single-family, one-unit residence ? Accessory Dwelling Units (ADU), guest houses, "granny" units, and "in-law" quarters are eligible with the following parameters: ? The property must be defined as a one-unit property ? Multiple accessory units are not permitted ? Must meet investor guidelines and city/county zoning ordinances ? Per investor guidelines ? If rental income from the ADU is used for credit qualifying, CalHFA will also use the gross rental income for the compliance income calculation ? Condominium/PUDs must meet all investor and CalHFA's master servicer, Lakeview Loan Servicing's (LLS), guidelines > FHA Single-Unit condominium project approval process is not allowed ? Manufactured Housing

Loan Program CalPLUS FHA & CalHFA FHA CalHFA VA

Manufactured Housing Permissions

Manufactured homes are permitted with the following parameters: ? Singlewide manufactured homes are not eligible ? Manual Underwriting is not permitted on manufactured homes ? All manufactured homes must meet FHA 4000.1, master servicer and CalHFA loan

program requirements

Manufactured homes are not permitted

CalHFA USDA

Manufactured homes are permitted with the following parameters:

New Manufactured Homes (First Owner) ? Singlewide manufactured homes are not eligible ? Leaseholds and Community Land Trusts are not eligible ? Unit must not have ANY alterations or additions since construction in the factory

(e.g. decks, porches not allowed) ? All manufactured homes must meet USDA 7 CFR 3550.73, master servicer and

CalHFA loan program requirements

2021 CALIFORNIA HOUSING FINANCE AGENCY

calhfa. | 877.9.CalHFA (877.922.5432)

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